This content is provided through a paid partnership between Moving2Canada and Scotiabank.
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Building a good credit history is an important part of life in Canada. It helps show lenders how you manage money and can open access to things like credit cards, rentals, and loans.
But once the basic steps to build the foundation of a solid credit score are accomplished, how do you continue to strengthen your rating?
Get Started with Support from Scotiabank
Scotiabank offers tools and support to help you build your credit and manage your finances in Canada. You can speak with a Scotiabank advisor to learn more about credit and financial products that may support you in your first years in Canada.
First things first: What is credit?
Credit is a contract or an agreement where someone borrows money and repays that money to the lender at a later time, generally with an interest charge. The interest is the cost of the loan.
Simple steps to start building credit
There are a few simple steps we can follow to start building a credit history:
Always pay your bills on time
Pay bills in full, as much as possible
Don’t apply for too many cards at once (this can negatively affect your credit score)
Keep balances low, if possible
Don’t use all of your credit.
Action items for the longer-term
These action items can help support your financial health and may build your score over time (assuming nothing else negatively impacts your score):
Aim to use less than 30% of your available credit at any given time
Maintain older credit accounts to demonstrate credit history
Diversify your credit types
Be strategic about applying for new credit
Avoid missing payments to keep your credit in good standing (automatic payments or electronic alerts from your financial institution can help here).
Build your credit with support from Scotiabank
The Scotiabank StartRight® Program allows you to apply for a Scotiabank credit card without a Canadian credit history and you could get up to a $15,0001 credit limit. If approved, once you have your card and make purchases with it, you are on your way to building credit history so long as you are using it responsibly by making the full payments on time.
Through Scotiabank’s partnership with Nova Credit, you may also be able to use foreign credit history when applying, which could help you access a higher credit limit from the start2.
You can also speak with a Scotiabank advisor to get guidance tailored to your situation.
Warm Wishes,
The Moving2Canada team, sponsored by Scotiabank
Legal Disclaimer
This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
1Subject to credit approval. To be eligible, you must be a participant in the Scotiabank StartRight® Program. To qualify for a credit card, you must be a resident of Canada and the age of majority in your province/territory where you live. Your approval for a credit card and the credit limit assigned will be determined based on Scotiabank’s credit criteria, including your verifiable income and credit history (If available). The credit limit amount of up to $15,000 under the Scotiabank StartRight® Program is subject to change by Scotiabank from time to time without prior notice. A credit history in Canada is not required in order to be eligible for a credit card under the Scotiabank StartRight® Program.
2Subject to credit approval and other conditions. Only available for the following select countries: Australia, Austria, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, South Africa, South Korea, Spain, Switzerland, the United Kingdom, United States and Ukraine. Select countries are subject to change without notice.
